Foreign Stocks Beaten Down to 1970s Valuations

Based on a variety of measures, U.S. stocks are trading at their cheapest valuations in 20 years. Foreign stocks are even cheaper (approximately 25% cheaper, on balance), having fallen to valuations not seen since the mid-1970s. Broad foreign stock indexes trade at price-to-book values ranging from 0.85x to 1.26x and dividend yields of 4.3% to 5.4%. Small capitalization stocks are attractively valued in both domestic and particularly foreign stock markets.

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Comments

[blonde molly:]

yes!

Jan 07 05:47 AM